Awaiting Concrete Proposal From Apple, Says Commerce Minister Prabhu

The commerce and industry ministry is awaiting a concrete proposal from iPhone maker Apple to set up manufacturing unit in India, Union Minister Suresh Prabhu said today.

"We are waiting for a good proposal from Apple...Please give us a concrete proposal. If the proposal comes, we will examine it. We are always open for that," Prabhu told reporters here.

During a recent meeting with Apple officials, the minister has asked them for a proposal.

Nick Amman, Director, Government Affairs and Priya Balasubramaniam, Global Vice President, Operations, Apple met the minister last Friday.

The Cupertino-based iPad manufacturer Apple has asked for certain concessions for setting up manufacturing unit in the country.

The government had sought investment and job creation details from the iPhone maker to facilitate setting up its manufacturing facility in India.

In March, the then Commerce and Industry Minister Nirmala Sitharaman had informed the Rajya Sabha that the government has not accepted most of the demands of the company.

Apple India had sought concessions, including duty exemption on manufacturing and repair units, components, capital equipment and consumables for smartphone manufacturing and service/repair for a period of 15 years.

The company also wants relaxation in the mandated 30 percent local sourcing of components, besides reduction in customs duties on completely-knocked-down and semi-knocked-down units of devices that are to be assembled in the country.

Apple does not manufacture devices on its own but gets the job done through contract manufacturers. It sells its products through company-owned retail stores in countries like China, Germany, the US, the UK and France, among others.

It has no wholly-owned store in India and sells its products through distributors such as Redington and Ingram Micro.